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Author Question: An unanticipated decline in investment demand within the new classical model will cause a. the ... (Read 10 times)

ts19998

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on: Jun 30, 2018
An unanticipated decline in investment demand within the new classical model will cause
 
  a. the price level to fall with no effect on output.
  b. output to fall with no effect on the price level.
  c. both the price level and output to fall.
  d. no change in either the level of price or output.

Question 2

In the real intertemporal model with investment
 
  A) the firm maximizes the present value of profits.
  B) the firm maximizes current profits.
  C) the firm maximizes the present value of revenues.
  D) the firm maximizes current profits plus future profits.


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Brenm

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

A


ts19998

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

bassamabas

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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